Nissan’s new CEO willing to be fired if no turnaround at Japanese giant

Makoto Uchida pleaded with Nissan shareholders to be patient while he comes up with a plan by May to recover from crumbling profits. (AP)
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Updated 18 February 2020

Nissan’s new CEO willing to be fired if no turnaround at Japanese giant

  • Makoto Uchida, who took over the top job in December, put his job on the line at the automaker’s shareholders’ meeting
  • Uchida pleaded with shareholders to be patient while he comes up with a plan by May to recover from crumbling profits

YOKOHAMA: Nissan’s new chief executive said on Tuesday he would accept being fired if he fails to turn around Japan’s second biggest automaker which is grappling with plunging sales in the aftermath of the scandal surrounding ex-chairman Carlos Ghosn.
Makoto Uchida, who took over the top job in December, put his job on the line at the automaker’s shareholders’ meeting, where he faced demands ranging from cutting executive pay to offering a bounty to bring Ghosn back to Japan after he fled to Lebanon.
Nissan’s worsening performance has heaped pressure on Uchida, formerly Nissan’s China chief who became its third CEO since September, to come up with aggressive steps to revive the company.
On Tuesday, Uchida, who was repeatedly heckled by shareholders, said he was ready to face dismissal if he failed to improve profitability at the company, which is on course to post its worst annual operating profit in 11 years.
“We will make sure that we steer the company in an effective way so that it is visible in the eyes of viewers. I will commit to this: if the circumstances remain uncertain you can fire me immediately,” he said.
Uchida, 53, did not give a timeframe for improving Nissan’s performance.
The new boss must prove to the board he can accelerate cost-cutting and rebuild profits at the 86-year-old Japanese giant, and that he has the right strategy to repair its partnership with France’s Renault, sources have told Reuters.
Uchida pleaded with shareholders to be patient while he comes up with a plan by May to recover from crumbling profits and a corporate shake-up following Ghosn’s arrest in Japan in late 2018 over financial misconduct charges.
“If you can be patient a little bit longer, on a day-to-day basis you will be able to sense we are changing,” he said.
Ahead of the meeting, some shareholders demanded more clarity about Uchida’s plan.
“I just want to know what the plan for recovery is. At the moment, the share price has dropped again, and the value of the company has plummeted,” said a 70-year-old former employee who owns shares in the company.
“If this is the situation, part of me thinks that we would be better off with Ghosn ... If we don’t get a clearer vision of the path the company is taking, it will be a worry.”
Nissan’s shares are trading around their lowest level in more than a decade following its latest earnings.
Last week, Nissan cut its dividend outlook to its lowest since the 2011 financial year, after dwindling car sales drove the company to post its first quarterly net loss in nearly a decade.
Shareholders gathered at the extraordinary meeting in Yokohama to vote in new directors including Uchida and Chief Operating Officer Ashwani Gupta.
Their appointments highlight a changing of the guard at Nissan, as shareholders were also voting on motions for former company stalwarts, CEO Hiroto Saikawa and COO Yashuhiro Yamauchi, to leave their board director positions.


NMC Health’s new executive chair vows to recover misused funds

Updated 05 April 2020

NMC Health’s new executive chair vows to recover misused funds

  • London-listed NMC recently revised its debt position to $6.6 billion, much higher than earlier estimated
  • NMC’s stock has more than halved in value since December and trading in its shares was suspended in February

DUBAI: The new executive chairman of hospital operator NMC Health vowed on Saturday to work with authorities in Britain and the United Arab Emirates (UAE) to recover misused funds and called on the company’s creditors for a debt standstill.
Faisal Belhoul said in a statement that keeping NMC Health operating was a “national priority,” particularly as the country and the world battle the coronavirus pandemic.
Belhoul said putting the hospital operator into administration would “cause instability to the operating businesses of the NMC Group, creating additional pressure on the group’s liquidity and reducing value for all creditors.”
A temporary debt standstill, by contrast, would allow the firm to prepare and activate a recovery plan.
London-listed NMC recently revised its debt position to $6.6 billion, much higher than earlier estimated.
NMC’s stock has more than halved in value since December and trading in its shares was suspended in February. The decline was triggered by a report by short seller Muddy Waters that questioned the company’s financial statement.
Belhoul’s appointment was made after the company’s non-executive directors uncovered alleged theft and excess undisclosed borrowings by former directors of the company, the statement said.
Belhoul is a founder and chairman of Ithmar Capital Partners, which owns a 9% stake in NMC.
“We are working in full cooperation and in close dialogue with authorities in the UAE and UK, including the UK’s Financial Conduct Authority (FCA), and will vigorously chase down the perpetrators for return of these funds,” he said.
Abu Dhabi Commercial Bank, one of more than 80 local, regional and international creditors, said last week it had over $981 million exposure to NMC Health.
NMC Health claims to be the largest private health care company in the UAE, operating more than 200 facilities, which includes hospitals, clinics and pharmacies.
“The NMC Group is currently treating hundreds of people suspected of having COVID-19 and in the UAE has screened more than 10,000 workers for the virus in partnership with the Ministry of Health and Prevention and the Ministry of Human Resources and Emiratization,” the statement said.